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According to George Soros, the corona virus could mean the end of the EU


According to George Soros, the corona virus could mean the end of the EU and Brussels may have to tax citizens directly

  • George Soros believes perpetual bonds could keep the EU afloat during the pandemic
  • Perpetual bonds are bonds that cannot be repaid but make regular payments
  • To fund these bonds, the EU may have to tax the citizens of its member states directly
  • Here's how you can help people affected by Covid-19

Billionaire financier George Soros said the European Union could be forced to tax its citizens directly as the bloc collapses due to the coronavirus pandemic.

Covid-19 has wreaked havoc across the continent and brought parts of the global economy to a standstill. Governments have been forced to raise borrowing to levels never seen in peacetime history.

89-year-old Soros believes that perpetual bonds – bonds that cannot be repaid but offer investors constant interest payments – could keep the EU alive.

To fund these bonds, the EU may have to tax the citizens of its member states directly.

Billionaire financier George Soros (pictured) said the European Union could be forced to tax its citizens directly as the bloc collapses due to the coronavirus pandemic

Covid-19 has wreaked havoc across the continent, with Italy one of the hardest hit countries (a street in Naples is being disinfected by army officials).

Covid-19 has wreaked havoc across the continent, with Italy one of the hardest hit countries (a street in Naples is being disinfected by army officials).

In a transcript of a question-and-answer session emailed to reporters, Soros said that the damage to the eurozone economy from the new corona virus would "last longer than most people think".

He added that the rapid development of the virus meant that a reliable vaccine was difficult to develop.

In a transcript of a question-and-answer session emailed to reporters, Soros (pictured) said that the damage to the eurozone economy from the new corona virus would "last longer than most people think".

In a transcript of a question-and-answer session emailed to reporters, Soros (pictured) said that the damage to the eurozone economy from the new corona virus would "last longer than most people think".

The hedge fund veteran and chairman of Soros Fund Management LLC said perpetual bonds used by the British to finance wars against Napoleon would enable the European Union to survive.

"If the EU is now unable to think about it, it may not be able to overcome the challenges it is currently facing," said Soros.

& # 39; This is not a theoretical possibility; it can be the tragic reality. & # 39;

Soros, who became famous in 1992 against the pound, said that with large countries like Germany selling bonds with negative yields, perpetual bonds would alleviate an impending budget crisis across the block.

He said the EU needed to maintain its AAA credit rating to borrow such debt – and therefore have tax raising powers to cover the cost of the bonds – and therefore proposed simply approving the tax rather than levying it.

"There is a solution," said Soros. & # 39; Taxes only need to be approved; They don't have to be implemented. & # 39;

When asked about the Brexit, Soros said he was particularly concerned about Italy: "What would be left of Europe without Italy?"

When asked about the Brexit, Soros said he was particularly concerned about Italy: "What would be left of Europe without Italy?" Pictured: A visitor wearing a protective mask is pictured in the Galleria Borghese after it has been reopened to the public with social detachment and hygiene measures

When asked about the Brexit, Soros said he was particularly concerned about Italy: "What would be left of Europe without Italy?" Pictured: A visitor wearing a protective mask is pictured in the Galleria Borghese after it has been reopened to the public with social detachment and hygiene measures

He added that the rapid development of the virus meant that a reliable vaccine was difficult to develop. Pictured: Visitors with protective masks look at a statue in the Galleria Borghese

He added that the rapid development of the virus meant that a reliable vaccine was difficult to develop. Pictured: Visitors with protective masks look at a statue in the Galleria Borghese

"The easing of state aid rules that favor Germany was particularly unfair to Italy, which was already the sick man in Europe and was then the most affected by COVID-19," said Soros.

Soros fled Hungary when the Communists consolidated power in 1947. He studied at the London School of Economics.

His Quantum Fund made huge profits in 1992 by betting that the pound was overvalued against the German mark, forcing the British to pull the pound out of the European exchange rate mechanism.

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(tagsToTranslate) Dailymail (t) News (t) Coronavirus (t) European Union